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The Botswana Gazette Wednesday 28 September - 04 October 2016

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convenient online and mobile services Supplement of The Botswana Gazette O1 Convienient online and mobile services Wednesday 28 September - 04 October 2016

ONLINE & MOBILE BANKING: industry changing phenomenon


evelopments in information and communications technology have arguably had their greatest effect in the banking industry. The transformation has been nothing short of staggering, so much so that at times one cannot differentiate a bank from a mobile phone operator. The banking sector is a curious and strange beast, highly competitive but hugely profitable for entities that have managed and embraced changes aligned to developments in technology and heterogeneous market segments. The profile of banking customers dramatically changed in the 80s and 90s as platforms for information sharing grew exponentially. On the back of this and the mergers and acquisitions that characterised the industry the use of technology to retain and grow customer bases and the concomitant cost reductions experienced allowed some banks to develop industry leading comparative advantages. Retail banking is developing and continues to drive a cashless society in which payments for goods and services no longer needs to be a static building confined event. The security benefits are innumerable, and it is easy to understand why some retailers do not accept cash at their points of sale. So, what is mobile banking? Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct a range of  financial transactions  remotely using a mobile device such as a mobile

phone or tablet, and using software, usually called an app, provided by the financial institution for the purpose. Mobile banking is usually available on a 24-hour basis. Some financial institutions have restrictions on which accounts may be accessed through mobile banking, as well as a limit on the amount that can be transacted. (Source: E-commerce Series & Wikipedia) The types of financial transactions which a customer may transact through mobile banking include obtaining account balances and list of latest transactions, electronic bill payments, and funds transfers between a customer’s or another’s accounts. Some also enable copies of statements to be downloaded and sometimes printed at the customer’s premises; and some banks charge a fee for mailing hardcopies of bank statements. From the bank’s point of view, mobile banking reduces the cost of handling transactions by reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions. Transactions involving cash aren’t handled using mobile banking, and a customer needs to visit an ATM or bank branch for cash withdrawals or deposits. Mobile banking differs from mobile payments, which involves the use of a mobile device to pay for goods or services either at the point of sale or remotely. Depending on the bank, mobile services may include but are not limited to;

• • • • • • • • •

Mini-statements and checking of account history Alerts on account activity or passing of set thresholds Monitoring of term deposits Access to loan statements Access to card statements Transaction possibilities may include; Funds transfers between the customer’s linked accounts Paying third parties, including bill payments and third party fund transfers Check Remote Deposit

So then, what is Online or Internet Banking? Online banking, also known as internet banking, e-banking or virtual banking, is an electronic payment system that enables customers of a bank or other  financial institution  to conduct a range of  financial transactions  through the financial institution’s website. The online banking system will typically connect to or be part of the core banking system operated by a bank and is in contrast to branch banking which was the traditional way customers accessed banking services. To access a financial institution’s online banking facility, a customer with internet access would need to register with the institution for the service, and set up a password and other credentials for customer verification. The credentials for online banking are normally not the same as for telephone or mobile

banking, for security reasons. Financial institutions now routinely allocate customers numbers, whether or not customers have indicated an intention to access their online banking facility. Customer numbers are normally not the same as account numbers, because a number of customer accounts can be linked to the one customer number. The customer visits the financial institution’s secure website, and enters the online banking facility using the customer number and credentials previously set up. The types of financial transactions which a customer may transact through online banking are determined by the financial institution, but usually includes obtaining account balances, a list of the recent transactions, electronic bill payments and funds transfers between a customer’s or another’s accounts.

Most banks also enable a customer to download copies of bank statements, which can be printed at the customer’s premises because some banks charge a fee for mailing hard copies. Some banks also enable customers to download transactions directly into the customer’s accounting software. The facility may also enable the customer to order a cheque book, statements, report loss of credit cards, stop payment on a cheque, advise on change of address and other routine actions. (Soure: Financial News & Wikipedia’s History of Online Banking) Mobile banking and online banking for part of what can best be described as an electronic banking system and not commerce because the latter constitutes the collection of payments via credit or debit card for goods and services available online.

Imara Capital Securities’ Board, Management and Staff would like to wish His Excellency the President Lt General, Dr Seretse Khama Ian Khama & the people of Botswana a Happy Golden Jubilee.

Asset Management | Corporate Finance | Stockbroking | Trust Services

Imara Capital Securities Morojwa Mews | Plot 74770 Unit 6 | 2nd Floor | Western Commercial Road New Central Business District (New CBD) Gaborone | Botswana ImaraGroup

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IMARA INVESTING IN AFRICA 2016/09/22 12:54:08 PM

Wednesday 28 September28 - 04September October 2016 The Botswana2016 Gazette sport Convenient online and mobile services Wednesday - 04 October

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TheWednesday Botswana Gazette Wednesday September2016 - 04 October 2016 online and mobile services 28 September - 0428October Convenient

Welcome Standard Chartered Mobile


tandard Chartered Bank Botswana recently launched their revamped digital banking platforms in Gaborone. Clients were given the opportunity to experience their world class digital banking platforms, this following the launch of their mobile app, Standard Chartered Mobile, in 8 African markets earlier this year. The significant revamp unifies their mobile and online banking platforms, giving clients a consistent, global-standard experience across multiple devices. This means that whether they use their laptops, tablets or mobile phones, clients can bank conveniently from any location, with an augmented experience. This platform will run side-by-side with the existing USSD based mobile banking platform which was launched in 2009 and will cater for those without smartphones. Standard Chartered Mobile was designed and created following much consultation with the bank’s clients to understand the key elements in a mobile application that would not only respond to their day-to-day banking needs, but leverage time and convenience as well. The Standard Chartered Mobile launch also includes an online banking revamp, enhancing user experience with improved navigation and userfriendly interfaces on the bank’s website. The app and the website work together seamlessly, offering customers a unified digital banking experience retained within robust security features. Notably, Standard Chartered Mobile offers clients the ability to do both local and international telegraphic transfers from within the app. Furthermore, the app enhances the ease of on-the-go banking by allowing clients to add beneficiaries from within the app without the need to revert to the online version. The revamp also comes with a list of utility companies ensuring clients can conveniently pay for their everyday needs; Standard Chartered Bank is looking to continuously add to the number of vendors on the list in response to client payment needs. Soon to be released in its scheduled November update, Standard Chartered Mobile will offer touch



ome start-ups the world over have turned to online platforms to launch their enterprises thereby avoiding overhead costs associated with premises ideally located to cater for a particular demographic. There are some key considerations, like competition, price and operational problems however which if ignored could result in failure for local entrepreneurs. Historically businesses in Botswana viewed the market as underdeveloped thus forestalling investing in infrastructure to develop ecommerce. The speed and reliability of internet connections were prohibitive and to large extent still remain so. A change in the mind-set of consumers was also required but someone had to invest in that or wait for a gradual acceptance of online shopping as a way of life. Banks too were seen as an impediment, special online trading accounts had to be set up and generally banks wanted as much as 5% of every transaction in associated fees. Times have changed; micro businesses have turned to social media, primarily Facebook to engage in digital marketing and reach potential customers without a huge outlay in marketing budgets. Growing business initially only on Facebook quickly develop their own web-pages but few to date offer an online payment platform for their products and services. The American owned PayPal provides a solution as espoused on their site “Make a payment in exchange for goods and services without sharing your financial information with the seller. It’s simple, faster and more secure. Currency conversion fees may apply”. So what are the key factors to setting up a successful online enterprise? Start with a business name and register the entity to safeguard your chosen identity. Secure a domain name and website even if you are not immediately ready to develop it. License your business to give it credibility. Use social media to market your business and direct customers to your website, online marketing is really the key to success. Keep your site fresh, updated and user friendly; customers rarely have time for intricacies they don’t understand. A growing trend in Botswana is peer-peer or consumer-consumer online marketing of goods and services. This is unrestricted platform although general laws governing the legal use of social media apply. An informal virtual market place has been created where anything is sold, from shoes to motor vehicles and properties. Trendy imported apparels are a common feature on this market which has fast developed into a trading haven.

ID login, a biometric fingerprint authentication technology and self-service wealth management tools. Clients will be able to set up their investment profiles online by answering a series of questions on their financial position, investment objectives and risk profiles, gaining access to Standard Chartered Bank investment products suited to their profile. Additionally, international investment and finance media leader, Global Finance, has named the World’s Best Digital Banks in the Middle East & Africa for 2016. Standard Chartered Bank won the prestigious award for Botswana, an accolade which the bank is proud to have received. Standard Chartered Mobile and the online banking revamp is instrumental in Standard Chartered’s strategy of using digital technology to deliver the future of banking to clients in Africa. The Bank last year (2015) announced it will invest $1.5bn in technology globally over three years.


PO3 age 19

Wednesday 28 September28 - 04September October 2016 The Botswana2016 Gazette sport Convenient online and mobile services Wednesday - 04 October

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t has been almost a year since Sefalana launched its online retail service offering, motivated by their vision to use technology to differentiate themselves in the market. The timing could not have been better for the listed retailer which also completed a rebranding exercise during the same period. As a pioneer online retailer in Botswana, and currently still the only one, Sefalana has completed the obligatory learning curve and now enjoys a growing list of regular shoppers utilising the service. According to Heidi Gopolang of Sefalana, their aim was to provide a virtual shopping experience

with the obvious benefit to customer who no longer have to negotiate traffic to arrive at the store, search for products and then queue at checkout points. Though slow at first there has been a large acceptance and utilisation of this unique service with users appreciative of the time saving bonus. Heidi explained that although the service is only available to Gaborone and the surrounding areas, in as far as delivery is concerned, a roll-out to other major centres forms Part Two of the service offering. Customers include Batswana scattered all over the world including Europe, Northern America and Australasia who utilise the service for goods to be

delivered in and around Gaborone. Sefalana also offers a “click and collect” service for those who, for whatever reason, want to collect their own shopping Online security was an integral consideration whilst the service was being crafted. To this end Sefalana partnered with Barclays Bank who themselves have a wealth of experience in online retail and corporate transactions. With Barclays managing the payment portal customers enjoy advanced security features so much so that Sefalana cannot access their personal banking details. Customers generally pay using their credit or debit cards if their banks allow the use of these for online payments. Improvements in internet infrastructure have aided in the speed of not only the shopping itself but the payment as well. Customer feedback has been excellent; there are those who simply do not have the time nor desire to fight traffic instore or out. Contrary to popular belief that automation and mechanisation lead to automatic redundancies, Sefalana has in fact employed even more people by creating this dedicated division charged with the smooth end-end execution of online purchases. According to Heidi, Sefalana expects to employ more people as the second phase of their roll-out is implemented. If shopping convenience is of paramount importance and you are digitally connected then visit, Botswana’s first online retailer.

The internet: the good, the bad and the ugly Since 1974

Sefalana family wishes Batswana a joyous

50th Anniversary of Independence as the nation salutes a remarkable five-decade-journey of progress.


t has been called the information super-highway, a global network of interconnectedness; the internet has defined a generation and propelled civilisation into a new age. The world wide web is more than a source of information, governments have been toppled by online dissent and protest notably during the Arab Spring which swept through the Arab world in 2011 bringing with it new governments in Egypt, Tunisia and Libya. Social media was chiefly responsible in mobilising millions of people to participate in democratic uprisings; dictatorships had nowhere to hide. The power of the internet in shaping sociopolitical and economic environments cannot be under estimated. The flip-side of this has been the development and advances in cybercrime. Users and organisations are subjected to viruses, varying malicious attacks and malware. Other crimes include the infiltration of networks and hardware devices to conduct fraud, cyber scams, identity theft cyber bullying and cyber stalking. According to Statista, which keeps statistics on cybercrime the USA economy loses upward of $525,000,000 annually to cybercrime. Cyber predators targeting children on social media is a growing, egregious ill associated with the internet. The success of international terrorism can be attributed to the internet to some extent. The recent bombings in New York were conducted by an assailant who purchased the bomb-making equipment from online retailer E-Bay. The so called Islamic State has been known to conduct cyberbased successful international recruitment drives. Terrorism and other organised criminals have migrated their residence to cyber-space, making it increasingly difficult to curtail their illicit activities. Some local experts suggest that Botswana is still extremely vulnerable to cybercrime because few organisations appreciate or fathom their exposure to clear and present danger. Many parents have little interest or control over the content and with whom their children interact with on the internet. The vulnerability of children remains a major concern; crimes have been committed on the back of social media contact by prowling cyber degenerates. School going children have also taken to social media to bully and torment their peers so excessively that some young victims have resorted to suicide. The internet has become part and parcel of our daily lives; digital connectivity is the lifeblood of modern society. It is incumbent on users to protect themselves from the underlying threats that come into play purely from plugging into the system. The super highway of digital connectivity provides rich pickings for the astute and spells absolute disaster for the unprepared.

The Botswana Gazette Wednesday 28 September - 04 October 2016

stanbic Bank S

tanbic Bank launched its internet banking services in the Botswana market more than 10 years ago, when payments of services via debit or credit card were still somewhat of a novelty. Today swipe machines enjoy ever-increasing ubiquity as society rapidly moves into a cashless transacting environment. According to Pius Inambao, Head, Self Service Channels the bank’s customer centric focus has allowed for the development of online and mobile services to meet the demands of dynamic customer preferences. Stanbic Bank online service offering for retail customers allows account holders to access and manage their accounts remotely from anywhere at any time. Customers can also transact remotely and can purchase; • Prepaid Electricity • Airtime • And pay their Multichoice accounts Payments to third party beneficiaries are also possible with proofs of payments available on the same platform. Card less ATM withdrawals are also possible through online and mobile banking. In addition to these platforms, customers receive SMS and email notifications to keep track of account activity. Pius Inambao, Head of Self Service Channels at Stanbic Bank whilst elaborating on their service offerings explained the confidence that their customers have as far as the security features they employ to govern online and mobile service. ” Stanbic Bank customers can expect new product and service offerings as the bank continues on its innovation drive”, said Pius Inambao. The growth in virtual banking ironically has not deterred traditionalists who still insist on their weekly or monthly trek to the bank, however the tech-savvy generation comfortably prefer to conduct as much as possible online and Stanbic Bank caters for both.



s with many things a universally accepted definition of E-commerce is hard to find because it inherently means different things to different people. However, Margaret Rouse, a contributor to TechTarget defined it as follows; “E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business. The terms e-commerce and e-business are often used interchangeably. The term e-tail is also sometimes used in reference to transactional processes for online shopping.” Botswana’s acceptance of traditional e-commerce has been somewhat hobbled by lingering fears of cyber-crime and over-exposure to virtual people and entities, especially as far as business-consumer and consumer-consumer transactions are concerned. Regardless of this, growing acceptance and adoption of e-commerce and its platforms has given rise to on-line shoppers and a burgeoning virtual supply chain. South African retailers and service providers were amongst the first in Africa to offer online shopping to customers who placed little value in the traditional way of buying homogenous goods such as baked beans and other FMCG offerings. Simply put, there is no “shopping experience” or emotional involvement in the purchase of these. Exclusively brick and mortar establishments will have to reassess their cost structures in future because hybrid entities have evolved, the so called “Bricks and Clicks” which offer the traditional shop but coupled with online shopping services complete with delivery or customer collection. E-commerce has driven the proliferation of border-less virtual markets. Consumer-consumer transactions constitute huge business as buyers find sellers in unregulated ways and transact as they wish circumventing stores, agency holders and dealers, a phenomenon not yet seen in Botswana. Social media however seems to be the preferred model for local micro enterprises, but this is highly localised with activity almost exclusively confined to urban Botswana. Social media has not escaped the attentions of corporate Botswana, many organisations have joined the bandwagon not only through advertising but also launching new products and offering online specials. Marketing information is no longer the preserve of large corporates; neither is key supply chain information and data pertaining to demographics and utilisation rates. The internet has given rise to highly informed customers who can compare products and prices from anywhere at any time in faceless and voiceless interactions. Botswana’s improving digital infrastructure has opened doors to new-generation entrepreneurs who are no longer restricted by time, space or location. It is envisaged that the costs associated with e-commerce are likely to drop on the back of consumer demand and competition amongst on-line retailers.


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According to Shield Senwelo, Head of card Acquiring and Issuing, they have seen a growing trend amongst their customers in online purchases. Senwelo explained that ecommerce is the purchasing and payment of goods and services from vendors who accept credit or debit card payments on their sites. The uptake of ecommerce has been slow by Botswana vendors and retailors; perhaps perceived costs being the major impediment. But explained Senwelo, the reach, security and added convenience make ecommerce a viable proposition. Many Batswana are repeat buyers from online retailers such as EBay and Amazon. Senwelo expects developments in ecommerce to go beyond the well-established travel and tourism sector, which lends itself to ecommerce because of the international nature of its clientele. Voted Best Foreign Exchange Provider in Botswana, 2016 by Global Finance Magazine, Stanbic Bank is definitely “Moving Forward”.


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Wednesday 28 September28 - 04September October 2016 The Botswana2016 Gazette Convenient online and mobile services Wednesday - 04 October

Online supplement  

An online supplement on online and mobile services.